Electrolux Q2 Sales Rise 6.3%
By Jeff Malester -- TWICE, 7/25/2005
Stockholm, Sweden — Buoyed by a “good trend in sales, particularly in North America,” Electrolux AB reported a 6.3 percent jump in consolidated revenue during the second quarter, hitting $4.3 billion, compared with $4.1 billion in the year-ago period. Adjusted for changes in exchange rates, sales rose 5.8 percent.
Sales of consumer durables in North America increased 10.2 percent in the second quarter, reaching $1.1 billion in the period, up from $983.2 million the previous year. The segment, which includes major appliances, saw industry shipments of core appliances increase by almost 1.8 percent in the three months ended June 30.
North American operating income in the second quarter reached $44.7 million, up from $43.1 million in the same three months in 2004.
However, on a consolidated basis, Electrolux reported a decline in operating income in the second quarter, to $241.6 million from a year-on-year $279.7 million, excluding items affecting comparability, due mainly to a $166.2 million increase in raw materials costs. The company said it raised prices in several markets, but still could not compensate for the materials cost increase.
The manufacturer said it plans to ramp up production of side-by-side refrigerators at its new Juarez, Mexico, plant during the back half of the year, while cutting back output from its refrigeration factory in Greenville, Mich. The move will improve the company's cost structure and is expected to yield savings by the second half of 2006.
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